A profit warning from Macmahon Holdings has added to the gloom hanging over mining services companies. The sector is already reeling from project deferrals by miners because and the dip in the iron ore price.

Before the Bell – All you need to know about overnight trading and what’s in store for the local session ■ SPI down 9 pts ■ US growth at 3.1pc in Dec quarter ■ Tech spending seen rising ■ US Fed unlikely to buy more bonds ■ Oil, gold ease

Lycopodium announced on Wednesday morning that the company had achieved a net profit of $8.2 million, better than expected by management and analysts at Hartleys. The broker was expecting an interim net profit of $6.5 million and a dividend of 5¢.

Recent statistical data is supportive of anecdotal evidence gleaned on this analyst’s latest tour of Western Australia’s emerging industrials that activity in the mining services sector is steadily improving.